Banks must fund development: Mangudya

Sunday Mail Reporter

LOCAL financial institutions have been challenged to use their role as facilitators of transactions in the economy to drive national development by funding projects that are in line with Zimbabwe’s national aspirations.

This was said by Reserve Bank of Zimbabwe Governor Dr John Mangudya during the launch of the National Building Society (NBS)’s Corporate and Institutional Banking (CIB).In a speech read on his behalf by the central bank’s director of bank supervision, Mr Philip Madamombe, Dr Mangudya said: “Through their intermediary role, banking institutions have the power to redirect capital to accelerate the pace and scale of positive change in our economy.

“On its part, NBS has largely been contributing to national development through financial inclusion and housing development. This focus is in line with Zimbabwe’s vision of becoming an upper middle-income economy by 2030 and is in support of the National Development Strategy 1 (2021-2025), whose overarching goal is to ensure high, accelerated, inclusive and sustainable economic growth, as well as socio-economic transformation and development,” he said.

Corporate and institutional banking involves setting up a division in a bank responsible for putting together tailor-made financial solutions, including loans for corporations, financial institutions and governments.

Through its CIB, NBS plans to provide a wide range of financial solutions based on individual clients’ model of operations critical to their bottom line.

NBS managing director Mr Tapera Mushoriwa said establishment of the CIB was geared towards contributing to the attainment of Vision 2023.

“To this effect, we believe the launching of CIB will ensure that the society meets the national mandate and vision of our society.”

He added: “We are a Zimbabwean bank; this is home. “We understand the market and our current and future performance is tied to the same operating environment.

“We believe in banking focused on you by providing tailor-made solutions specific to your circumstances and aligned to your vision.”